Signature Products GmbH will start supplying Chinese-made CCELL vape devices to Europe.
CEO Florian Pichlmaier said his company may profit from the legalisation of recreational marijuana in Germany in the next two years.
Signature will focus on (wholesale) hardware trading, CBD cartridge filling, and personalised branding.
Analysts anticipate the German CBD market at €1 billion yearly, while legal marijuana sales might reach €2-4 billion by 2025. The government has yet to set guidelines for marijuana production, distribution, and marketing beyond the 2017 medicinal marijuana restrictions. Germany might control 50% of the EU cannabis industry by 2024, say analysts.
Signature, which creates cannabis distillates and isolates from hemp, is diversifying amid a worldwide CBD sector crisis. The Pforzheim, Germany-based company also sells hemp seeds and protein and is producing hemp “meat.”
“Thanks to vape products, we can cover more of the hemp market and are better positioned for the future,” Pichlmaier added.
Shenzhen, China’s CCELL is part of Smoore International Holdings Limited, a publicly traded vaping device developer. Smoore, whose shares are traded in Hong Kong, possesses 209 patents for such items and has applied for 254.
Baden-Württemberg gave Signature Products €800,000 last year to build a regional hemp protein value chain alongside Hohenheim University. The company uses hemp grown on more than 400 hectares.
Signature said it obtained new funding for its CCELL business, but did not disclose the investor or amount.